Indiana Security Deposits

All references to Indiana State Code

INDIANA SECURITY DEPOSITS - TERMINATION OF AGREEMENT
     Sec. 12. (a) Upon termination of a rental agreement, a landlord shall return to the tenant the security deposit minus any amount applied to:
        (1) the payment of accrued rent;
        (2) the amount of damages that the landlord has suffered or will reasonably suffer by reason of the tenant's noncompliance with law or the rental agreement; and
        (3) unpaid utility or sewer charges that the tenant is obligated to pay under the rental agreement;
all as itemized by the landlord with the amount due in a written notice that is delivered to the tenant not more than forty-five (45) days after termination of the rental agreement and delivery of possession. The landlord is not liable under this chapter until the tenant supplies the landlord in writing with a mailing address to which to deliver the notice and amount prescribed by this subsection. Unless otherwise agreed, a tenant is not entitled to apply a security deposit to rent.
    (b) If a landlord fails to comply with subsection (a), a tenant may recover all of the security deposit due the tenant and reasonable attorney's fees.
    (c) This section does not preclude the landlord or tenant from recovering other damages to which either is entitled.
    (d) The owner of the dwelling unit at the time of the termination of the rental agreement is bound by this section.
As added by P.L.2-2002, SEC.16.

Use of deposits
     Sec. 13. A security deposit may be used only for the following purposes:
        (1) To reimburse the landlord for actual damages to the rental unit or any ancillary facility that are not the result of ordinary wear and tear.
        (2) To pay the landlord for:
            (A) all rent in arrearage under the rental agreement; and
            (B) rent due for premature termination of the rental agreement by the tenant.
        (3) To pay for the last payment period of a residential rental agreement if a written agreement between the landlord and the tenant stipulates that the security deposit will serve as the last payment of rent due.
        (4) To reimburse the landlord for utility or sewer charges paid by the landlord that are:
            (A) the obligation of the tenant under the rental agreement; and
            (B) unpaid by the tenant.

IC 32-7-5-12
    Sec. 12. (a) Upon termination of a rental agreement, all of the security deposit held by the Indiana landlord shall be returned to the tenant, except for any amount applied to:
        (1) the payment of accrued rent;
        (2) the amount of damages that the landlord has or will reasonably suffer by reason of the tenant's noncompliance with law or the rental agreement; and
        (3) unpaid utility or sewer charges that the tenant is obligated to pay under the rental agreement;
all as itemized by the landlord in a written notice delivered to the tenant together with the amount due within forty-five (45) days after termination of the rental agreement and delivery of possession. The landlord is not liable under this chapter until supplied by the tenant in writing with a mailing address to which to deliver the notice and amount prescribed by this subsection. Unless otherwise agreed, the tenant is not entitled to apply a security deposit to rent.
    (b) If the landlord fails to comply with subsection (a), the tenant may recover all of the security deposit due the tenant and reasonable attorney's fees.
    (c) This section does not preclude the landlord or tenant from recovering other damages to which either is entitled.
    (d) The owner of the dwelling unit at the time of the termination of the rental agreement is bound by this section.

IC 32-7-5-14
Sec. 14. In case of damage to the rental unit or other obligation against the security deposit, the landlord shall mail to the tenant, within forty-five (45) days after the termination of occupancy, an itemized list of damages claimed for which the security deposit may be used as provided in section 13 of this chapter, including the estimated cost of repair for each damaged item and the amounts and lease on which the landlord intends to assess the tenant. The list must be accompanied by a check or money order for the difference between the damages claimed and the amount of the security deposit held by the landlord.

IC 32-7-5-15
Sec. 15. Failure by the landlord to comply with the notice of damages requirement within the forty-five (45) days after the termination of occupancy constitutes agreement by the landlord that no damages are due, and the landlord must remit to the tenant immediately the full security deposit

IC 32-7-5-17
Sec. 17. A waiver of this chapter by a landlord or tenant, by contract or otherwise, is void.

Disclaimer: Laws change over time and there may be times when information on this web site will not be current. This information is for general informational purposes only. It is not intended as legal advice nor is it a comprehensive treatment of the subject. It is not a substitute for advice from an attorney.
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